E-commerce businesses have become part of our everyday lives. Ordering products online has become so convenient with just a couple of clicks. Within 24 hours, your items will be at your door. While consumers don’t typically think about the process those products go through to get to your door, Calgary businesses increasingly demand logistics, warehousing, and distribution spaces to meet the rising expectations for quick and efficient delivery.
This trend has significantly impacted Calgary’s industrial property leasing landscape, driving demand for modern, strategically located facilities to support the e-commerce boom.
How E-Commerce is Shaping Calgary’s Industrial Market
As e-commerce companies strive to meet the growing demand for same-day and next-day delivery, the need for warehousing and distribution centres has surged. In Calgary and surrounding towns, this has increased competition for industrial spaces with easy access to transportation routes like Stoney Trail, the Trans-Canada Highway, and the Calgary International Airport. Proximity to these logistics corridors ensures faster shipping times, reduced transportation costs, and the ability to service a broader customer base.
Rising Demand for Warehouse Space
One of the most significant impacts of e-commerce on industrial real estate is the growing demand for larger, more advanced warehouse spaces. E-commerce operations require facilities that can accommodate extensive inventory, manage intricate logistics operations, and handle high return volumes. This trend has driven developers in Calgary to build taller and more adaptable warehouses, focusing on maximizing storage capacity and operational efficiency.
Urban Warehousing and Its Challenges
The desire for faster delivery times has prompted businesses to seek warehouse spaces closer to Calgary’s urban core. However, this comes with challenges. Urban industrial spaces are often limited, with higher land and construction costs.
Urban locations can experience traffic congestion, which can impact operational efficiency. Businesses looking to lease or purchase industrial real estate in these areas need to carefully evaluate the balance between location benefits and potential cost challenges.
Technological Advancements Driving Change
The rise of e-commerce has accelerated technology integration in warehousing and distribution centres. Automation, robotics, and advanced inventory management systems are essential for businesses looking to stay competitive.
In Calgary, industrial spaces are evolving to meet the needs of tech-driven logistics operations. Modern facilities must now offer specialized layouts to accommodate the automation systems and technologies needed for efficient e-commerce operations.
Employment Growth in the Logistics Sector
E-commerce is driving demand for industrial space and reshaping the workforce. The prominence of online shopping has created a need for skilled workers in warehousing, logistics, and supply chain management. The industrial real estate sector is seeing an influx of jobs tied to e-commerce operations. There is a high demand for workers proficient in operating advanced technologies and managing fast-paced logistics environments.
Sustainability and Green Logistics
As e-commerce continues to grow, so does the focus on sustainability within the industrial real estate sector. Businesses increasingly seek eco-friendly logistics solutions, such as energy-efficient warehouses, green building materials, and sustainable shipping practices. This trend is reflected in Calgary’s industrial real estate market, where developers are starting to incorporate green initiatives into their designs to attract environmentally conscious businesses.
Key Considerations for Businesses Looking for Industrial Space in Calgary
For e-commerce businesses looking to capitalize on growth, there are several key factors to consider when searching for logistics and warehousing facilities in Calgary:
- Location: Proximity to major transportation routes is crucial for efficient delivery and distribution. The prime locations include industrial spaces near Stoney Trail, Deerfoot Trail, and the Calgary International Airport.
- Size and Scalability: As e-commerce operations grow, businesses must ensure their warehousing facilities can scale accordingly. Flexible, adaptable spaces that can accommodate evolving logistics needs are essential.
- Technology Integration: Modern warehouses must be equipped to handle the latest technology, including automation and advanced inventory systems.
- Sustainability: With growing consumer awareness of sustainability, businesses should consider industrial spaces incorporating green building practices and energy-efficient systems.
CMS Real Estate: Helping You Navigate Calgary’s E-Commerce Boom
CMS Real Estate is well-versed in the unique needs of e-commerce businesses seeking industrial real estate in Calgary. With a deep understanding of the local market, CMS can help businesses find the ideal logistics, warehousing, or distribution space that meets their operational needs. CMS provides tailored solutions to help businesses thrive in the ever-evolving e-commerce landscape.
Whether you’re expanding your e-commerce operations or looking for a new industrial space, CMS Real Estate can provide the expertise and guidance to help you find the right property to support your business goals. Partnering with trusted real estate experts like the CMS Real Estate team is crucial for businesses looking to stay competitive in Calgary’s dynamic industrial market.
Ready to learn more about our industrial real estate services? Contact CMS Real Estate today.
- Gerry Macdonal Sr: (403) 219-0151
- Gerry Macdonald Jr: (403) 219-0161
- Jessica Macdonald: (403) 291-0425
Blog posts from CMS Real Estate are for general information only. The content should not be considered real estate management or investment advice. If you are in need of professional real estate advice, please contact our team.